Lyon Oks Employee Buy Plan

March 21, 1985

The board of directors of Lyon Metal Products Inc. approved the proposed $28 million acquisition of Lyon by a group of employees and a proposed employee stock ownership plan (ESOP) and trust. The ESOP is to be formed by conversion of Lyon`s salaried employee pension plan, which has a $12 million actuarial surplus. Lyon shareholders would receive $20 cash per share in the deal. The board`s action is subject to a definitive merger agreement, shareholder approval and termination of a class-action suit brought by the salaried employees.